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Agusto & Co has withdrawn the “A-” credit rating assigned to Geregu Power Plc and its N40.09 billion Series 1 Senior Unsecured Bond, after the company defaulted on its scheduled eighth coupon payment and fourth principal repayment, raising fresh concerns about its near-term debt-servicing capacity.
Aside from the downgrade, Agusto & Co is stepping away entirely, saying it cannot rely on Geregu Power’s financial reports right now.
In an update on Friday, August 14, 2026, the ratings agency said the withdrawal reflects both the default event and its inability to obtain sufficient reliable information to maintain a credit rating opinion on the power generation company.
Barely a week ago, Nairametrics reported that the company had missed both the coupon and principal obligations on the bond.
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What Agusto & Co is saying:
Agusto & Co said it can no longer rely on Geregu Power’s previously issued financial statements because the company’s management has commenced an independent verification process.
- “Pending completion of this review, Agusto & Co is unable to rely on the current audited financial statements and, therefore, cannot provide an opinion regarding the Company’s creditworthiness.
- “We will undertake a reassessment of the Company’s rating upon completion of the ongoing independent forensic review and receipt of reliable financial statements for the year ended 31 December 2025,” the agency said.
The withdrawal affects both Geregu Power’s corporate rating and the N40.09 billion Series 1 Senior Unsecured Bond.
The immediate trigger was the company’s default on its eighth coupon payment and fourth principal repayment.
Get up to speed
The rating withdrawal represents a significant change from Agusto & Co’s earlier assessment of Geregu Power.
The agency had previously assigned an A- rating with a Stable outlook to Geregu Power’s N40.085 billion bond, while its historical ratings show the bond had previously carried a BBB+ rating with a Stable outlook.
The company’s debt position has come under greater scrutiny following the missed bond payments, particularly against the backdrop of its sharply weaker 2026 operating performance.
Nairametrics reported that Geregu Power’s revenue fell sharply in the first half of 2026 amid major turbine maintenance, while the company’s earnings weakened significantly.
The default therefore comes at a time when investors are already assessing the impact of reduced generation capacity and cash flows on the company’s ability to service its obligations.
The development also contrasts sharply with the company’s stronger 2025 financial performance, when Geregu reported N41.98 billion in pre-tax profit, up 1.74% from N41.26 billion in 2024.
What you should know
Geregu Power’s N40.09 billion bond was issued in July 2022 as a seven-year, 14.5% senior unsecured fixed-rate bond. At the time of issuance, Agusto & Co assigned the instrument a BBB+ rating, while GCR Ratings assigned an A rating.
- The company had also projected strong 2026 operating performance earlier in the year, forecasting N57.12 billion in Q2 revenue and N12.03 billion profit after tax, supported by expected strong energy sales and capacity charges.
- However, the subsequent deterioration in operating performance and the bond default have materially changed the credit-risk picture.
- The company may also have some potential liquidity support from the Federal Government’s power-sector debt settlement programme.
Geregu was among five power generation companies that signed settlement agreements with Nigerian Bulk Electricity Trading Plc, with the combined negotiated settlement amount for the five companies put at N827.16 billion.
